Tinotenda Hove- The Reserve Bank of Zimbabwe (RBZ) announced on Tuesday that annual ZiG inflation fell to 2.9% in August 2026, calling it the “lowest single-digit inflation rate recorded in the country since 1980.”

RBZ Governor Dr John Mushayavanhu said the decline showed government policies were delivering results on price, currency and exchange-rate stability.

“The Reserve Bank is encouraged by the low single digit inflation, attained in January 2026 and persisted through to August 2026,” Dr Mushayavanhu said.

According to the central bank, annual ZiG inflation averaged 4% between January and August. It rose from 4.1% in January to 4.8% in April after a global oil price shock linked to conflict in the Middle East.

The RBZ said Zimbabwe’s performance compared well with other sub-Saharan African economies, where domestic inflation increased by between two and four percentage points on average following the same oil shock.

August’s 2.9% annual ZiG inflation was also slightly below domestic US dollar inflation of 3.1%.

“This entails that prices of domestic goods and services, since August 2025 have increased at relatively the same pace in both ZiG and US dollar,” Dr Mushayavanhu said.

The central bank argued the narrow gap should give businesses more flexibility.

“The prevailing low and stable inflation environment should support greater predictability and certainty in business planning and investment critical for the wider use of ZiG in the multi-currency environment,” the RBZ said.

But on the ground, many Zimbabweans say the numbers do not match reality. Basic goods remain unaffordable, wages have stagnated, and most households are still paid in ZiG while key expenses are charged in US dollars.

Critics say similar inflation rates in both currencies simply mean people are being squeezed from both sides, with no real gain in purchasing power.

Dr Mushayavanhu insisted the RBZ would “maintain its focus on price, currency and exchange-rate stability to strengthen confidence in the domestic currency and support macroeconomic stability.”

He added that the bank “remained committed to stay the course and walk the talk in pursuit of stability, in line with the National Development Strategy 2 (NDS2) and Vision 2030.”

For now, with inflation at a 46-year low but poverty still biting, many Zimbabweans say the real measure of success will be whether they can afford food, fuel and rent next month.